Many Nations Upset Over Proposed GATT Package : Trade: Representatives don’t want to undo the compromise plan, but they do want changes in the farm reform proposals.

Leading economic powers Monday expressed unhappiness with key parts of a proposed deal to liberalize world trade, casting doubt on whether the agreement will be ready by the April 17 target date.

Representatives of the United States, European Community and Japan stressed they did not want to undo a compromise package put forward by Arthur Dunkel, director-general of the General Agreement on Tariffs and Trade.

But a U.S. representative accused Brussels and Tokyo of seeking to reopen negotiations on agriculture, thus slowing the agreement.

In Kansas City, President Bush stressed that the United States would reject any deal that did not lead to big cuts in farm subsidies. The Europeans, eager to protect their small farmers, have resisted sweeping reductions.

At a meeting attended by the 108 nations taking part in the Uruguay Round of trade talks, Canada, South Korea, Scandinavian and many developing nations also expressed serious concern at the proposed GATT package.

Dunkel issued the 436-page document last month. It proposes cutting import barriers in historically protected areas such as agriculture and textiles, and new rules to liberalize trade in commercial services and cut abuse of patents and copyright.

Dunkel told the meeting of GATT’s top level Trade Negotiations Committee that compromise proposals in sensitive areas were based on “the most informed and conscientious evaluation of the level of consensus achievable.”

“I have no new--or better--solutions to offer on my own,” he said.

He urged countries to complete talks on the details of a target 30% tariff cut for goods and initial offers to improve market access for services such as banking and insurance.

These were not covered in December’s draft accord and are critical to determining whether countries are prepared to accept the final Uruguay Round deal.

U.S. envoy Rufus Yerxa told the meeting that the draft accord contained “basic ingredients for finalizing” the talks. But he said it did not go far enough in reducing barriers or providing remedies against unfair trading practices.

Washington wanted bigger reductions in farm supports, particularly export subsidies. Dunkel proposed that budgetary spending on export subsidies should be cut 36% and the actual tonnage of subsidized farm produce 24% between 1993 and 1999.

EC delegate Tran Van-Thinh said Dunkel’s farm reform proposals must be “seriously improved” before the 12-nation trading bloc would accept them.

Japan’s representative, Minoru Endo, said plans to change all import barriers into tariffs and to provide minimum import access posed “serious difficulties” for Tokyo.